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HomeMy WebLinkAbout2008-09-02 Council Regular Meeting MINUTES OF THE REGULAR MEETING OF THE EDINA CITY COUNCIL HELD AT CITY HALL SEPTEMBER 2, 2008 7:04 P.M. ROLLCALL Answering rollcall were Members Bennett, Housh, Swenson and Mayor Hovland. Absent was Member Masica. CONSENT AGENDA ITEMS APPROVED Motion made by Member Swenson and seconded by Member Bennett approving the Council Consent Agenda with the exceptions of Agenda Item V.B. Resolution No. 2008-80 Entering Into MnDOT Grant Agreement 93209 Landscape Beautification T.H. 100, and Agenda Item V.I. Data Link Antenna —T-Mobile Van Valkenburg Water Tank. Rollcall: Ayes: Bennett, Housh, Swenson, Hovland Motion carried. *MINUTES - REGULAR MEETING OF AUGUST 19, 2008, WORK SESSION OF AUGUST 19 2008 EXECUTIVE SESSION OF AUGUST 22, 2008, AND STUDY SESSION OF AUGUST 22, 2008, APPROVED Motion made by Member Swenson and seconded by Member Bennett approving the minutes of the Regular Meeting of August 19, 2008, Work Session of August 19, 2008, Executive Session of August 22, 2008, and Study Session of August 22, 2008. Motion carried on rollcall vote — four ayes. PUBLIC HEARING — REVISED FINAL DEVELOPMENT PLAN AND APPEAL OF VARIANCES APPROVED — 7300 BUSH LAKE ROAD, MIKE PALM, RINK PROPERTIES LLC — CONTINUED FROM AUGUST 4, 2008 Affidavits of Notice presented and ordered placed on file. Planner Presentation Planner Teague presented the request of Rink Properties LLC for approval of the Final Development Plan to build a permanent structure as a third indoor ice rink at the Minnesota Made Ice Center at 7300 Bush Lake Road and a variance request to allow spectator seating. He noted the property was zoned Planned Industrial District (PID) and reviewed that two years ago, the Council approved a Final Development Plan and variance to build a rigid frame (temporary) structure. The applicant was now proposing to construct a permanent structure in that same location with spectator seating. Mr. Teague stated the application was reviewed and recommended for approval, with conditions, by the Planning Commission. He advised the Planning Commission's three concerns related to on-site circulation, the need for additional landscaping, and entrance treatments, and had been resolved by the applicant in a revised plan. Mr. Teague reported the Zoning Board of Appeals unanimously approved the variance. He added staff had appealed the Zoning Board's decision to allow the City Council to take action on the entire project. Mr. Teague stated precedent was established with approval allowing the first two rinks spectator seating. Mr. Teague advised minimum setbacks would be met with this project and noted the Transportation Commission found no impacts to adjacent roadways. The Council discussion included: the concern of one Planning Commissioner who voted against the recommendation due to perceived safety issues related to traffic circulation, secondary entrances, signage, and tightness of the turn of traffic proceeding from the south to the north; and, safety concern at the back of the building due to its location on a dead-end Page 1 Minutes/Edina City Council/September 2. 2008 road with lower police surveillance. It was noted the plan had been revised to address circulation concerns by widening the lane somewhat and creating a one-way traffic pattern. The Council discussed the benefit of incorporating glass into the entry doors so participants could see if their ride had arrived and see into the parking lot before leaving the building. Proponent Presentation Mike Palm, 5034 Bruce Place, Minnesota Made Ice, explained the reasons they revised the plan to construct a year-round, more aesthetically pleasing structure. To address the Planning Commissioner's concern, they have revised the plan to include door awnings, even though it was not a requirement, to improve the aesthetics of the entry points. Mr. Palm answered questions of the Council. He stated that the back lot was well lit and Minnesota Made Ice was not planning to include glass in either in entry doors or as sidelights. Mr. Palm reviewed their youth training program and stated they provide directions to use Bush Lake Road north off 1- 494. Public Testimony No one appeared to comment. Member Housh made a motion, seconded by Member Swenson, to close the public hearing. Ayes: Bennett, Housh, Swenson, Hovland Motion carried. Member Swenson made a motion, seconded by Member Bennett, adopting Resolution No. 2008-87 approving the revised Final Development Plan to build a third rink for Minnesota Made Ice Center including a variance to allow spectator seating, at 7300 Bush Lake Road, based on the following findings: 1) With the exception of the variance for spectator seating, the proposal would meet the required standards and ordinances for a Final Development Plan. 2) The proposal meets the required standards for a variance because: a. The proposed use was reasonable, given the existing two rinks on the site contain spectator seating. The proposed new rink would have a similar capacity to the first two rinks. b. There would be adequate parking to support the new rink and seating. c. Existing roadways would support the project. 3) The proposed building would match the existing structures. Approval of the Final Development Plan would be subject to the following conditions: 1) The site must be developed and maintained in conformance with the following plans, unless modified by the conditions below: • Site plan date stamped August 8, 2008 • Building elevations date stamped July 2, 2008 • Grading plan date stamped August 8, 2008 • Landscape plan date stamped August 11, 2008 2) Submit a copy of the Nine Mile Creek Watershed District Permit. The City may require revisions to the approved plans to meet the District's requirements. 3) A Class I standpipe hose connection must be installed at the doors on the south end of the new building, as required by the fire marshal. 4) Per Edina Code Section 850.10. Subd. 3.B, a letter of credit, performance bond or cash deposit must be submitted in the amount equal to 150% of the proposed landscaping prior to issuance of a certificate of occupancy for the building. Page 2 Minutes/Edina City Council/September 2, 2008 5) The secondary entrances must be signed and remain open when the parking lots on the north and west side of the building are in use. Ayes: Bennett, Housh, Swenson, Hovland Motion carried. PUBLIC HEARING — COMMERCIAL PHOTOGRAPHY PERMIT APPROVED — CONTINUED FROM AUGUST 19, 2008 — 5500 MERRITT CIRCLE Affidavits of Notice presented and ordered placed on file. Staff Presentation Assistant to the City Manager Smith presented the request of Big Minyan Film Company to film a major motion picture in Edina. As part of the requirements to issue a photography permit, a public hearing was scheduled and notices sent out to residents within 500 feet of the property plus Doncaster Way since they were proposing to park in that area. Ms. Smith advised the applicant had provided proof of insurance and payment for the permit fee. Proponent Presentation Tyson Bidner, Location Manager for Coen Brothers, 540 North Fifth Street, Suite 1100, Ford Center, Minneapolis, 55401, described the plot for the comedy "A Serious Man" and their request to film the movie for six days in Edina using 5500 Merritt Circle for the movie's interior shots. Mr. Bidner requested the City allow semi trucks to be parked along Highlands Park. He explained they were attempting to rent driveways around the film site to park and store equipment on Doncaster Way. Mr. Bidner explained there would be a tent in Highlands Park for catered meals and the film crew would work with City staff to locate the catering tent so as not to interfere with athletic fields. Mr. Bidner explained they would require the crew to park their personal vehicles at Garden Park and shuttle to and from the filming site. Mr. Bidner stated a letter describing the proposed film schedule including contact telephone numbers had been handed out door-to-door within the 500-foot notification zone and beyond. That information would be updated, as needed, and also provided to Ms. Smith. The Council discussion included: safety of students walking to school, potential wear on the streets in this low-lying area, and how damage to streets would be addressed. Mr. Bidner stated he had contacted the school and talked with Sgt. Tom Draper about having an officer on location every day to assure traffic control and student safety. In addition, Mr. Bidner agreed to work with staff regarding the best traffic route for semi trucks. Ms. Smith stated the applicant had the required insurance and would walk the neighborhood with City Engineer/Public Works Director Houle to assure any wear and tear on the road was addressed prior to their leaving the area. Public Testimony No one appeared to comment. Member Housh made a motion, seconded by Member Bennett, to close the public hearing. Ayes: Bennett, Housh, Swenson, Hovland Motion carried. Member Housh made a motion, seconded by Member Swenson, to approve issuance of a Commercial Photography Permit to Big Minyan Films LLC. Ayes: Bennett, Housh, Swenson, Hovland Motion carried. PUBLIC COMMENT Page 3 Minutes/Edina City Council/September 2, 2008 No one appeared. *AWARD OF BID — 2008 MICROSOFT ENTERPRISEIWGREEMENT RENEWED Motion made by Member Swenson and seconded by Member Bennett approving the renewal for the fifth year of a six-year agreement with Software House International, State Contract 425551, at $41,789.23. Motion carried on rollcall vote —four ayes. *AWARD OF BID — STORM SEWER IMPROVEMENT NO. STS 345 Motion made by Member Swenson and seconded by Member Bennett awarding storm sewer improvement, Oak Drive, Improvement No. STS 345 to the recommended low bidder, Minger Construction, Inc. at $30,309.05. Motion carried on rollcall vote —four ayes. AWARD OF BID — 2008 MILL AND OVERLAY CONTRACT ENG 08-14 Mr. Houle explained that the 2008 Mill and Overlay Contract would mill and overlay the existing pavement on Parklawn Avenue and West 76 Street from France Avenue to York Avenue. He said this project had been moved up into 2008 because of the severe deterioration of the roadways. Mr. Houle explained the condition had been called to staff's attention by a consultant hired to review the City's roadways. Mr. Houle said that there was adequate funding for the project since the West 70th Street and Metro Boulevard intersection would be done after the West 70th Street/Greater Cornelia Study has been completed and the two projects would be exchanged in order of completion. Mr. Houle said that there would be monies in the Municipal State Aid account to cover the project costs due to the re-scheduling of the projects. He recommended the contract be awarded to the low bidder Bituminous Roadways, Inc. Responding to Council questions about the cause of the deterioration, Mr. Houle explained a group of civil engineers was investigating the problem which had occurred in several communities and hoped to discover possible causes and remedies. Mr. Houle stated from a safety point of view, this road needed to be repaired. Member Swenson made a motion, and seconded by Member Housh, to award the 2008 Mill and Overlay, Contract No. ENG 08-14, Improvement Nos. BA-348 and BA-349, to Bituminous Roadways, Inc. at $311,638.15. Ayes: Bennett, Housh, Swenson, Hovland Motion carried. PURCHASE AGREEMENT AUTHORIZED FOR 7450 METRO BOULEVARD AND RESOLUTION NO. 2008-83 ADOPTED CALLING FOR SALE OF $14,000,000 CAPITAL IMPROVEMENT BONDS City Manager Hughes explained staff had negotiated a purchase agreement with ConAgra for the acquisition of 7450 Metro Boulevard for $8 million. He suggested they also consider calling for the sale of$14 million G.O. CIP Bonds in tandem with the purchase agreement. Mr. Hughes said Edina had until October 23, 2008, for the due diligence period to review studies and conduct testing relative to the 7450 Metro Boulevard site. He added the purchase agreement spelled out responsibility for closing costs, real estate taxes, and other issues with respect to the property and tracked closely with the term sheet previously reviewed by the Council. The Council expressed concern with language indicating the seller would not warrant or represent the information was true, accurate, or complete. City Attorney Poehler explained ConAgra's studies were acquired for the intended use of the building, not a future use by Edina. Mr. Hughes advised that the City's Environmental Engineer was now reviewing the Phase I Environmental Report, Phase II Investigation Report, and the supplemental Phase II Report, prepared by Barr Engineering for ConAgra, to assure they would have come to the same conclusion as reached by Barr Engineering. Page 4 Minutes/Edina City Council/September 2, 2008 The Council raised questions related to the proposed bond sale and payment of earnest money. Mr. Hughes explained the call for bonds ran concurrently with the due diligence period and, if needed, provided Edina with the opportunity to extend that bond opening date should the due diligence work not be completed. Ms. Poehler explained the circumstances under which the $100,000 earnest money would be returned, such as if the City does not sell the bonds or decides to not move forward during the due diligence period. Staff explained that the purchase agreement reference to $25,000 in damages related to reimbursement of Edina's expenses should the seller fail to close on the property. The Council discussed the agreement language indicating the purchaser takes the property in "as-is" condition with no warranty, questioned whether the agreement was broad enough to address equipment that may be on the property at closing, and asked about anticipated operating costs. Jack Rice, 4801 Hilltop Lane, explained that Edina would rely on the studies provided and testing conducted to satisfy itself as to the condition of the property during the due diligence period. Staff indicated their belief the purchase agreement language was sufficient and they anticipated significant demolition would be necessary so preserving fixtures was not a concern. Mr. Hughes referenced the memorandum from Mr. Houle explaining why operating costs of the new facility, which were based on square footages of comparable buildings, would approximate the costs of the current facility. Mr. Houle stated they were also looking at adding skylights to the roof in the garage, administration, and lunch areas, which would most likely result in electrical savings. Mark Ruff, Ehlers & Associates, presented information related to the proposed $14 million General Obligation Capital Improvement Plan (CIP) Bonds, Series 2008C, pursuant to a CIP plan authorized by the Council less than a year ago. Mr. Ruff recommended a lease revenue bond issue be considered to cover the costs once they were known, that would excess the $14,000,000 Capital Improvement Bond. He said the interest rates were anticipated in the mid- 4.5% range so it was a good time for Edina to sell bonds. Mr. Ruff explained the IRS provision called "bank qualification", and stated that given the size and needs of Edina, such bonds were not feasible for this issue. Mayor Hovland thanked Mr. Rice and City staff for their work on this issue on behalf of Edina. Member Housh made a motion, seconded by Member Swenson, to authorize the execution of a purchase agreement for 7450 Metro Boulevard. Council Members noted that while this was a difficult decision because of cost concerns, it was the correct decision to assure the safety and well being of the City's employees. With the new facility, it was hoped that operational efficiencies could be improved and increased. Ayes: Bennett, Housh, Swenson, Hovland Motion carried. Member Housh introduced Resolution No. 2008-83 Calling for the Sale of $14,000,000 G.O. Capital Improvement Bonds, Series 2008C. Member Swenson seconded the motion. Rollcall: Ayes: Bennett, Housh, Swenson, Hovland Motion carried. Mr. Hughes introduced Jim Doyle, ConAgra Vice President of Real Estate. The Council extended their appreciation to Mr. Doyle. RESOLUTION NO. 2008-80 APPROVED ENTERING INTO MNDOT GRANT AGREEMENT 93209 LAN DSCAP EAUTIFICATION T.H. 100 Mr. Hughes responded to Council's Page 5 Minutes/Edina City Council/September 2, 2008 concern stating staff would assure the City received a one-year growing season guarantee. He added the City had acquired a portable watering tank or "water buffalo" that would be parked at the site allowing the neighbors to water the new plantings. Mayor Hovland thanked Park Board Member Joseph Hulbert who had recruited residents' assistance and invited residents to participate in the landscape planting on September 13, 2008 starting at 9 a.m. Member Bennett introduced Resolution No. 2008-80 Accepting Grant for Roadside Landscaping Landscape Partnership Program at Trunk Highway 100 and 77th Street, Agreement 93209. Member Swenson seconded the motion. Rollcall: Ayes: Bennett, Housh, Swenson, Hovland Motion carried. *RESOLUTION NO. 2008-82 APPROVED CALLING SPECIAL ASSESSMENT HEARINGS (OCTOBER 7, 2008 AND OCTOBER 21, 2008) Motion made by Member Swenson and seconded by Member Bennett to adopt Resolution No. 2008-83 calling special assessment hearings on October 7, 2008, and October 21, 2008. Motion carried on rollcall vote —four ayes. RESOLUTION NO. 2008-81 APPROVED ACCEPTING VARIOUS DONATIONS Mayor Hovland explained that in order to comply with State Statutes; all donations to the City must be adopted by Resolution and approved by four favorable votes of the Council accepting the donations. Member Swenson introduced Resolution No. 2008-81 accepting various donations. Member Housh seconded the motion. Rollcall: Ayes: Bennett, Housh, Swenson, Hovland Motion carried. RESOLUTION NO. 2008-86 APPROVED REPEAL OF SPECIAL LAWS — EDINA FIREFIGHTER'S RELIEF ASSOCIATION Mr. Hughes advised the 2008 Legislature adopted a law that repealed the special laws enacted for different fire departments and relief associations. City Attorney Knutson had reviewed the legislation and deemed this action a housekeeping matter. Member Bennett introduced Resolution No. 2008-86 Repeal of Special Laws — Edina Firefighter's Relief Association. Member Housh seconded the motion. Rollcall: Ayes: Bennett, Housh, Swenson, Hovland Motion carried. *HEARING DATE SET (SEPTEMBER 16, 2008) — APPEAL OF DANGEROUS DOG DESIGNATION, 6621 GALWAY DRIVE Motion made by Member Swenson and seconded by Member Bennett setting public hearing date of September 16, 2008, for appeal of dangerous dog designation, 6621 Galway Drive. Ayes: Bennett, Housh, Swenson, Hovland Motion carried. RESOLUTION NO. 2008-85 APPROVED WESTIN FINAL PLAT Planner Teague presented the request of Westin Hotel and Condominiums for final plat approval to create individual lots, noting the preliminary plat was approved at the last Council meeting. Mr. Teague advised there had been no changes and Hennepin County found the final plat to be acceptable so staff recommended approval. Member Housh introduced Resolution No. 2008-85 approving the Final Plat of Westin Hotel and Condominiums at 3501 Galeria. Member Swenson seconded the motion. Rollcall: Page 6 Ayes: Bennett, Housh, Swenson, Hovland Minutes/Edina City Council/September 2, 2008 Motion carried. SOUND WALL FEASIBILITY REPORT Mr. Houle reviewed the location under consideration and advised that the Mn/DOT Office of Environmental Services Department had indicated that treated wood glue laminated sound walls were no longer allowed to be constructed over or adjacent to aquatic environments. He said Mn/DOT would require a Plexiglas sound wall, with an estimated cost of $2.75 million. Mr. Houle presented the estimated assessment costs to properties and advised that the project was not economically feasible. Mr. Houle recommended staff be directed to send residents a letter advising them of this situation and that the Council not call for a public hearing. The Council discussion included the option of using an earthen berm or plantings and possible grant opportunities. Mr. Houle advised that a berm and plantings could not be placed within the flood plain and indicated the location where plantings could occur. He stated staff would communicate with the Nine Mile Watershed District about revegetation. Member Swenson made a motion, seconded by Member Housh, to not order a public hearing for a sound wall on Highway 169 between Londonderry Road and Lincoln Drive (east side) Improvement No. SA-19. Ayes: Bennett, Housh, Swenson, Hovland Motion carried. T-MOBILE DATA LINK ANTENNA INSTALLATION APPROVED —VAN VALKENBURG WATER TANK In response to Council's questions, Assistant City Manager Worthington advised there was no lighting associated with this 12-inch round antenna installation since it would be installed on the water tank itself, it was separated from residential areas by a private roadway, and there was a lot of landscaping so it was not visible from abutting residential properties. She also advised that since this was a restricted area, all cellular tenants on that water tank abide by the requirement to have a City employee present to gain access. Member Bennett made a motion, seconded by Member Swenson, to approve the lease with Telecom Transport Management, Inc. for a data link antenna and associated ground equipment on and around the Van Valkenburg Water Tank. Ayes: Bennett, Housh, Swenson, Hovland Motion carried. *CONFIRMATION OF CLAIMS PAID Motion made by Member Swenson and seconded by Member Bennett approving payment of the following claims as shown in detail on the Check Register dated August 21, 2008, and consisting of 36 pages; General Fund $227,991.06; CDBG Fund $81,872.00; Communications Fund $2,891.98; Working Capital Fund $70,453.61; Art Center Fund $15,651.61; Golf Dome Fund $667.65; Aquatic Center Fund $22,783.67; Golf Course Fund $34,133.30; Ice Arena Fund $16,519.46; Edinborough/Centennial Lakes Fund $22,630.54; Liquor Fund $129,737.30; Utility Fund $136,467.79; Storm Sewer Fund $10,321.47; PSTF Agency Fund $524.25; TOTAL $772,609.69 and for approval of payment of claims dated August 28, 2008, and consisting of 36 pages: General Fund $372,497.31; Communications Fund $4,780.43; Working Capital Fund $1,259,501.72; Construction Fund $76,780.85; Art Center Fund $20,872.07; Aquatic Center Fund $3,415.59; Golf Course Fund $33,929.50; Ice Arena Fund $249.84; Edinborough/Centennial Lakes Fund $26,802.93; Liquor Fund $189,124.23; Utility Fund $1,028,167.44; Storm Sewer $113,569.63; TOTAL $3,129,691.54. Motion carried on rollcall vote — four ayes. RESOLUTION NO. 2008-84 APPROVED SETTING THE 2009 PRELIMINARY BUDGET AND PROPOSED TAX LEVY Mr. Hughes presented the preliminary tax levy, noting it would Page 7 i Minutes/Edina City Council/September 2, 2008 be the maximum levy allowed and the basis for the Truth in Taxation notices. He stated the main increase in 2009 would be year one of the debt service levy for the Public Works facility and added debt service of $84,191 for equipment certificates spread over three years to fund equipment acquisition needs. Mr. Hughes noted the levy increase was 6.8%, comprised of a 4.4% increase in the general fund levy and a 2.4% increase in the debt service levy. Mr. Hughes advised that a 4.4% increase was the maximum increase allowed in the general fund levy under levy limit laws enacted by the 2008 Legislature. Other components of the levy relate to older debt and previously incurred debt. Mr. Hughes stated the Council would next be provided with a detailed budget for their consideration. Member Bennett introduced Resolution No. 2008-84 setting the setting the maximum proposed 2009 tax levies. Member Swenson seconded the motion. Rollcall: Ayes: Bennett, Housh, Swenson, Hovland Motion carried. TRUTH IN TAXATION HEARING DATE SET Following discussion, Member Swenson made a motion, seconded by Member Bennett, to set Monday, December 1, 2008, at 5:00 p.m. for the Truth in Taxation initial hearing; Monday, December 8, 2008, at 5:00 p.m. for the continuation hearing; and Tuesday, December 16, 2008, at 7:00 p.m. for the budget adoption hearing. Ayes: Bennett, Housh, Swenson, Hovland Motion carried. CORRESPONDENCE AND PETITIONS Mr. Hughes advised of the Edina Federated Women's Fed Fest event in January of 2009 and their desire to include a raffle. Following discussion, the Council directed staff to draft a Code revision, for Council consideration, to more narrowly define the type of charitable organization that could hold raffles at locations other than within an R-1 District. There being no further business on the Council Agenda, Mayor Hovland declared the meeting adjourned at 9:07 p.m. Respectfully submitted, Debra A. Mangen, City Cler Page 8